TOKYO, Aug 08 (News On Japan) - The Nikkei 225 index surged and the yen weakened in the foreign exchange market after the Deputy Governor of the Bank of Japan (BOJ) expressed a negative stance on additional rate hikes amid ongoing market volatility.
Shinichi Uchida, Deputy Governor of the Bank of Japan: "In unstable conditions, we are not considering raising interest rates."
In a speech, Deputy Governor Uchida addressed the recent significant fluctuations in the Nikkei 225, which recorded both its largest drop and rise this week, stating, "We will not raise rates in an unstable financial capital market."
On the 7th, the Nikkei 225 index initially fell by over 900 yen, but following Uchida's comments, it reversed course and at one point surged by over 1,100 yen.
In the foreign exchange market, the view that the BOJ is cautious about further rate hikes led to a strong move to sell yen and buy dollars, pushing the yen to weaken to the upper 147 yen range against the dollar.
Previously, on the 31st of last month, BOJ Governor Kazuo Ueda mentioned the possibility of additional rate hikes within the year during a press conference. Coupled with concerns over a slowdown in the U.S. economy, this had led to a rapid appreciation of the yen, reaching the 141 yen range against the dollar on the 5th of this month.
Source: ANN
